DAX futures analysis 02/05/2017

DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)

 

The consolidation on the DAX is throwing up mixed signals as the run of small bodied candles continues.

The momentum indicators are strongly configured but also reflect this consolidation now.

The near term breakout support at 12,411 is an increasingly important support for this consolidation now.

Trading on the hourly chart shows how the market has made very little progress in the past few sessions and with momentum indicators increasingly neutral the market is waiting for the next catalyst.

  • Resistance has once more come in this morning around 12,500 and the market dropped away.
  • A breach of support at the breakout of 12,411 would re-open a corrective move back towards the support band 12,668/12,298.

 

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